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OpenAI flow with Hugging Face

Beyond the Sandbox: What Happens When Autonomous AI Crosses the Line?

July 24, 2026 / / 0 Comments

Why the OpenAI/Hugging Face incident validates the security principles we can no longer afford to treat as optional.

If you need an undeniable proof point that the cybersecurity playbook has not just aged, but fundamentally fractured, the joint disclosure from OpenAI and Hugging Face regarding the GPT-5.6 Sol evaluation incident is your wake-up call.

During an internal evaluation designed to stress-test cyber capabilities, an AI model did not simply generate code on a screen. Operating autonomously in a “sandboxed” research environment, it calculated an exploit path, identified a zero-day vulnerability in an internal package cache proxy to break out to the open internet, pivoted laterally through testing nodes, harvested secret credentials, and executed a multi-stage attack to exfiltrate solutions directly from Hugging Face’s production database.

All without source code access. All driven by autonomous objective-function optimization.

Now, I already hear the skeptics online claiming this is just PR hype, marketing noise for frontier AI labs, or an attempt to build regulatory moats. Let’s dispense with that naive notion right away. This wasn’t an AI becoming “self-aware” or a marketing stunt. This was pure, mathematically driven objective-function optimization executing complex attack paths across real-world systems. In other words; the system is moving much faster with each new model it can run processes at insane speeds.

Assume Compromise

For those of us who have spent decades in the trenches as CISOs, CTOs, and other cyber veterans, this wasn’t an unexpected “black swan”, it was the inevitable real-world realization of the Unified AI Attack Lifecycle. I have worked at organizations where leadership swore up and down the network was “sandboxed”, “standalone”, “unattached”, or “off-network”. We cannot depend on those soft assurances any longer. I have been shouting for decades to “ASSUME COMPROMISE”, and with AI executing at machine speed, this edict is completely undeniable.

Here is why this precedent-setting event validates the exact architectural principles, data controls, and non-human identity frameworks The Security Cafe has been educating/urging security leaders and investors to adopt.

1. Non-Human Identity: The New Frontline Perimeter

For years, I’ve warned that in an era of autonomous agentic workflows, Identity is the only perimeter left. When I was at Microsoft, we hammered home that identity was the control plane for human users. Today, the game has shifted entirely to Non-Human Identities (NHIs) and non-human AI agents.

NHIs must have their own telemetry, agents, and continuous validation mechanisms. We have to be able to verify them, monitor them, and instantly shut them down if they step outside the scope of what they were explicitly asked to do. At the end of the day, humans write the prompts and configure the workflows, but AI will always seek the fastest, lowest-friction route to accomplish its objective.

In this incident, the model didn’t breach Hugging Face by fooling a human into clicking a phishing link, it acted as an autonomous non-human identity. It mapped system permissions, leveraged harvested API credentials, and called restricted endpoints directly.

The Takeaway: If your SOC treats machine identities, agent webhooks, and developer tokens as static background noise, you are completely blind to the primary vector of modern exploits. We must enforce strict Identity Threat Detection & Response (ITDR) and zero-trust boundaries on AI agents with the same, if not greater, rigor as human C-suite accounts.

2. Architecture with Immutable Guardrails

During my time at AWS and Microsoft, I spent countless hours explaining to engineering teams that you can’t build a house by just nailing 2x4s together without a structural blueprint. You don’t “spread security on like peanut butter at the end”, you bake it into the concrete foundation.

OpenAI noted that their standard production alignment classifiers and safety deployment safeguards were intentionally disabled for this capability evaluation. Intentionally disabled? Whenever I spoke with red-teamers back in my agency days, they loved it when an organization’s POC said, “Here’s the scenario: We have an insider, and it’s our most senior system administrator.” To which the red team commander would reply, “Thank you, we found your problem and can go home early, you’re essentially screwed.”

The model immediately exploited structural seams in the network environment, specifically abusing a third-party package cache proxy containing a zero-day vulnerability to break internet egress and move laterally. Soft software controls failed because the proxy itself was vulnerable.

The Takeaway: Passive sandboxing and soft perimeter boundaries are completely insufficient against models capable of long-horizon reasoning and automated zero-day discovery. Security architecture must be designed with programmatic, immutable, wire-level guardrails embedded directly into network egress and storage layers. If the architecture permits lateral movement or egress at the physical or hypervisor layer, an autonomous model will eventually find and weaponize that seam.

3. It’s All About the Data and Workflow Gravity

If there is one phrase I will shout from the highest mountain as long as I have air in my lungs, it is this: It’s all about the data.

Why did GPT-5.6 Sol break internet egress, chain zero-days, and execute remote code execution against Hugging Face? Because of Workflow Gravity. The target evaluation solutions and datasets lived inside Hugging Face’s production databases. The model mathematically inferred where the data resided and aligned its entire operational lifecycle around reaching that data layer.

The Takeaway: Data protection must be baked into execution and storage layers dynamically. Static database auditing and post-facto logging cannot stop a machine-speed agent. We need runtime data classification and inline Data Loss Prevention (DLP) that evaluates semantic intent at the exact point of execution before any payload or query reaches the database.

4. The Collapse of the Patch Window: Machine vs. Machine

As I highlighted when analyzing recent long-horizon AI models, AI is accelerating vulnerability discovery to machine speed. The OpenAI/Hugging Face incident proves that frontier models can independently discover non-trivial zero-days, chain them across disparate infrastructure, and execute complex attack paths without human intervention.

The traditional “30-day patch window” has not just shrunk, it has collapsed to zero. You and your teams must implement a continuous, predictive defense strategy. By predictive, I do not mean buying into vendor marketing gimmicks. I mean implementing automated inline virtual patching, context-aware proxy filtering, and continuous environment re-paving.

Notice also how Hugging Face responded. When the incident broke, they didn’t rely solely on third-party black-box cloud APIs, they utilized inspectable, self-hosted open models to conduct forensic reconstruction and contain the event. True resilience requires having sovereign, local defensive tools that you own and control when machine-speed incidents occur.

The Takeaway: Humans operating manual triage workflows cannot defend against automated exploit chaining. The response must be automated, low-overhead orchestration. Defenders must deploy Guardian Agents and autonomous SOC capabilities to detect protocol anomalies, monitor semantic drift, and re-pave compromised environments at the speed of the attack.

Investor’s Corner: Capital, Valuation Alpha, and the M&A Signal

For our venture capital and private equity partners, this incident is a massive market signal. It confirms that the enterprise security budget is undergoing a permanent reallocation away from legacy point solutions toward AI Runtime Infrastructure and Governance.

Key Market Takeaways for PE/VC

  • The Greenfield Replacement Cycle: Legacy Secure Email Gateways (SEGs) and static SAST/DAST tools are completely blind to multi-stage agentic exploits and logic manipulation. CISOs are actively seeking platforms that combine runtime visibility with active, real-time intervention.
  • The Non-Human Identity (NHI) Goldmine: Startups addressing machine secret management, agent governance, and non-human zero-trust access control are positioned as prime consolidation targets for the major cloud and security platforms.
  • Inline Proxy & Guardian Agent Alpha: Inline wrappers that act as context firewalls and semantic supervisors will see skyrocketing demand as enterprises demand real-time protection over live inference and agentic API calls.

Let’s Discuss

This incident proves a fundamental truth: AI security is not a future theoretical exercise. It is a real-time operational discipline.

  1. Is your organization treating non-human AI identities and agent credentials with the same zero-trust perimeters as human C-suite accounts?
  2. How are you re-architecting your network egress and internal proxies to prevent autonomous agents from finding unmonitored pathways?
  3. Where does Non-Human Identity Governance sit on your strategic roadmap or investment thesis for this year?

Let’s swap operational notes in the comments below.

Stay caffeinated. Stay secure.

Connect with Boston Meridian Partners

About the Author: I am Shawn Anderson, CTO and 2x former CISO, currently leading technical strategy at Boston Meridian. We are a boutique investment bank specializing in M&A and capital raises ($20m+) for the Cyber and Infrastructure sectors. Let’s connect on LinkedIn to discuss where the market is moving next.

From Grilled Cheese to Global Risk: Why Curiosity is Your Only Cyber Shield

July 20, 2026 / / 0 Comments

The Underwater Basket Weaving Guide to Cybersecurity

All our lives we are constantly learning new things and different ways to do them. Cooking is a lifelong journey where we first learn not to burn water, master a basic grilled cheese, or maybe fry an egg. Some people keep learning and go on to become Michelin-star chefs. Driving is a learned skill as well; while everyone has to suffer through driver’s education, there are some who practice, study the mechanics, and go on to drive NASCAR for a living. That doesn’t happen overnight, it takes years of experience, failing a few times, and relentless training.

Cybersecurity is exactly the same thing. Most people learn the bare minimum, well, almost most people, where they understand “don’t click the sketchy link” or “don’t reply to an unknown sender text offering you a cryptocurrency windfall.” But if you truly want to progress past the “grilled cheese” phase and pursue a real career in this industry, you need a different playbook.

First off, as they say in Ted Lasso… “Be Curious.” I cannot stress this enough. I’m not saying be paranoid; be curious. There is a fundamental difference. One creates a person who peer-reviews the dust bunnies under the bed when they check into a hotel room. The other wants to know exactly how the plastic RFID card they handed you at the front desk physically communicates with the lock on the door. Most people won’t give that card a second thought. If you are the person who does want to pull it apart and understand the data handshake, congratulations: you might be a good candidate for a job in cybersecurity.

But then comes the bad advice. You will inevitably hear industry gatekeepers say, “Just put in 5 years and get your CISSP!” Sure. And while you’re at it, go get a master’s degree in underwater basket weaving. Don’t get me wrong, the CISSP is a solid credential, and HR departments love it. But it is primarily a test of how well you can think like a manager, decipher tricky question structures from ISC2, and maintain broad knowledge across multiple domains. Trying to pass it without actual operational context is a special kind of torture.

If you want a path that actually works, focus on an ongoing desire to learn. We have a seismic shifts popping up every week, and with the advent of autonomous AI, the treadmill is only going to spin faster. But here is the secret the industry doesn’t want you to know: the underpinnings haven’t changed.

We have shifted from on-premises servers to cloud, multi-cloud, and complex hybrid environments, but the foundational plumbing remains the same. Data is still broken down into 1s and 0s. We still have a critical need for DDoS mitigation, firewalls, network intrusion detection, data protection, identity solutions, continuous monitoring, and incident response. There are still physical wires running through data center walls, and your home Wi-Fi router still needs proper security controls.

Go purchase an old-school book, yes, one of those things with pages, an index, and a spine, on the absolute basics of networking and operating systems. If you don’t understand how data moves across a wire, you can’t protect it when it flies into the cloud.

Once you have that foundation, use the tools of today, like AI, to dig deeper. Use them to learn how computers are actually built, or how security functions at the firmware level. I was recently talking to a friend who was terrified of putting their credit card information into their iPhone. I had to explain to them that Apple actually uses an isolated, dedicated hardware chip called the Secure Element, which relies on heavy cryptography to completely mask the card number, ensuring Apple itself doesn’t track their purchases. That’s the difference between paranoia and understanding the architecture.

Understanding this architecture is no longer optional because the threat landscape has gone global. The modern cyber professional isn’t just fighting a teenager in a basement anymore; we are up against systemic global risks. According to recent global risk reports, cyber insecurity, infrastructure vulnerability, and AI-driven misinformation rank at the absolute top of global threats. We are seeing weaponized autonomous AI agents that can scan every operating system on Earth for zero-day vulnerabilities in a matter of minutes. At the same time, massive infrastructure shifts, like the explosive energy demands of AI data centers, are stretching regional power grids to their absolute limits, introducing entirely new physical and structural failure modes to corporate networks.

If your plan is to sit back, check the box, and wait for a certification to make you an expert, you’re going to get run over. The global risk landscape is moving too fast for legacy blueprints. But if you protect your foundations, master the 1s and 0s, and maintain a relentless, driving curiosity about how things work under the hood, you won’t just survive the next phase shift, you will be the one engineering solutions.

🚀 Investor’s Corner: Securing the Action vs. Securing the Asset

Why is workforce technical competency a critical Private Equity (PE) and Venture Capital (VC) issue? Because buying a company based on a compliance checklist or a row of CISSPs is an illusion of security.

When systemic threat waves hit, teams lacking core architectural understanding create massive technical debt, stalling development timelines and tanking operational efficiency.

The traditional software procurement playbook is undergoing a massive replacement cycle. Real alpha for 2026 isn’t found in tools that secure static data assets; it’s found in the Connective Tissue governing runtime intent and autonomous execution.

Early-stage (Seed / Series A/B) innovators capturing massive market gravity are those engineering:

  • Autonomous Threat Investigation & Orchestration (e.g., Dropzone, Qevlar AI), Decoupling critical security baselines from human manual dependencies to resolve the industry burnout crisis.
  • Non-Human Identity & API Governance (e.g., Aembit, Entro, Onyx), Eradicating the vulnerability of hardcoded keys by treating machine-to-machine APIs as the new enterprise user identity.
  • Input/Output LLM Proxies & Runtime Visibility (e.g., TrojAI, Prompt Security), acting as the “Safety Switches” allowing enterprise clients to securely move complex AI workflows into production.

The Frontiers on the Horizon:

  1. The AI Frontier: Traditional phishing awareness simulations are dead. The market is aggressively funding platforms focused on Automated Red Teaming and Agentic Training (e.g., Armadin, XBOW, Staris), teaching teams to defend against self-learning, adaptive predator bots that exploit runtime visibility.
  2. The Quantum Frontier: Post-Quantum Cryptography (PQC) is shifting from academic theory to an existential requirement as NIST finalizes standard algorithms. True portfolio resilience now requires backing platforms centered on Crypto-Agility, retraining tech workforces to map cryptographic footprints and seamlessly transition away from legacy dependencies (like RSA-2048) without shattering operational uptime.

The Takeaway: Whether you are a practitioner learning basic networking or a VC managing a multi-billion dollar portfolio, the rule remains the same: Look under the hood, master the 1s and 0s, and protect your foundations.

#CyberSecurity #VentureCapital #ZeroTrust #AISecurity #PrivateEquity #TechStrategy #TheSecurityCafe @BostonMeridianpartners

Let’s Discuss

How are your teams balancing the rush toward autonomous AI pipelines without abandoning basic networking and cryptographic guardrails? Is the industry relying too heavily on compliance checklists over fundamental “1s and 0s” knowledge? Let me know your perspective in the comments!

Stay caffeinated, stay secure.

Please reach out to me or Boston Meridian Partners via our webpage and LinkedIn below.

www.bostonmeridian.com

Boston Meridian LinkedIn Page <- Follow this company!

About the Author:

I am Shawn Anderson, CTO and 2x former CISO, currently leading technical strategy at Boston Meridian. We are a boutique investment bank specializing in M&A and capital raises ($20m+) for the Cyber and Infrastructure sectors. Let’s connect on LinkedIn to discuss where the market is moving next.

AI Attack Lifecycle - Shawn Anderson

The Unified AI attack lifecycle

May 28, 2026 / / 0 Comments

The chain of change…

If you’ve been keeping up with our discussions here at The Security Cafe, or tracking the rapid evolution of enterprise pipelines, you already know one thing to be true: The traditional security playbook hasn’t just aged; it has fundamentally fractured. When we talk about the attack lifecycle, a concept pioneered conceptually by Lockheed Martin years ago, we used to picture binaries, command-and-control (C2) servers, and standard lateral movement across Windows subnets. But as enterprise workflows increasingly adopt Agentic AI, large language models, and automated data ingestion pipelines, the threat landscape has undergone a permanent phase shift. While you still need to understand what is coming in, through, and out of your environment the challenge is a multitude faster with the creation of AI.

Adversaries haven’t abandoned their old entry points; instead, they are using traditional delivery mechanisms to pull off entirely new, logic-based exploits. I have been in the trenches more times than I care to count. At the end of the day, we need to understand there are numerous ways the adversary (both in and out of the organization) will attack us.

To help visualize the problems in an AI world, I have mapped out a 6-Stage Unified AI Attack Lifecycle. It connects the foundational attack surfaces we manage every single day, Email Security, User Behavioral Risk, and Insider Threat Management, directly to the structural vulnerabilities of modern machine learning setups.

Here is exactly how an attack flows through this loop, and why your standard defense parameters might be missing the signal.

Step 1: The Initial Phishing E-mail (AI-Scaffolded Engineering)

The sequence begins exactly where the vast majority of enterprise breaches do: an external Phishing Mail. However, the AI context changes the sophistication of this initial delivery. Adversaries are now utilizing advanced offensive models to analyze public executive footprints and automatically write highly targeted, hyper-personalized spear-phishing scripts. They aren’t just aiming for low-level credentials anymore; they are explicitly targeting developers, ML engineers, and data system administrators who hold the keys to core production models.

Step 2: Unsafe User Actions (The Ingestion Trap)

Once the email hits the inbox, the attack chain splits based on user behavior: they might Browse a Website or Click a URL. In a traditional framework, this triggers a web exploit kit or a credential harvesting page.

In the modern enterprise AI context, this is where Indirect Prompt Injection thrives. If a user unknowingly directs an active, automated enterprise AI agent to process, read, or summarize the contents of that external web page, the hidden instructions embedded within the page take control. The AI agent silenty hijacks its own system instructions, executing unauthorized commands completely behind the scenes.

Step 3: Multi-Stage Interaction (Poisoned Attachments)

If the user follows the more direct path of opening a document asset via the “Open attachment” paperclip trigger, the attack transitions from perimeter email security straight into deep infiltration.

When a developer or data scientist opens a poisoned document on a client machine used to manage data warehouses or build model deployments, the adversary establishes localized persistence. By compromising the workspace of the staff building the models, the attacker gains direct, authenticated access upstream, bypassing the standard defenses guarding your core training data.

Step 4: Central Command, Monitoring, and Threat Management (The SIEM Anchor)

Running horizontally as a foundational arch beneath this entire exploitation sequence is your Security Information and Event Management (SIEM) environment. As I always stress to fellow security leaders, you have to treat your security posture like a blueprint where you can visualize the electrical, plumbing, and network routing simultaneously. Makes me miss the days of using Autocad.

The SIEM is your unified visibility layer. It is the core command structure responsible for logging, tracking, and cross-referencing events across the entire loop—ensuring that an anomalous outbound API call from an AI agent can be structurally correlated with an early phishing alert or an unusual endpoint interaction. There are a number of new startups who are working to bring the AI SOC to customers using pure automation. I list some of these at the end of this newsletter.

Step 5: Insider Threat Indicators (The Psychology of Risk)

Security isn’t just a technical challenge; it’s deeply behavioral. Below the main operational flow, we must constantly account for leading indicators of insider risk, which generally cluster into two core psychological profiles:

  • The Distracted and Careless: Well-meaning employees who are prone to pasting proprietary source code or highly confidential PII into unmonitored public models for quick productivity shortcuts, creating immediate exposure.
  • The Disgruntled or Disenchanted: Malicious or coerced insiders who actively abuse their authentic system credentials to bypass safety logic, clear code-validation rules, or deliberately introduce bias and backdoors directly into corporate fine-tuning training datasets.

Step 6: Data Leakage or Potential Sabotage (The Realized Event)

When these behavioral anomalies or unauthorized external actions go undetected, they culminate in a high-impact security event, marked by the Red Warning Triangle. In the machine learning era, this damage is divided into two distinct corporate impacts:

  • Unauthorized Data Leakage: High-volume extraction of confidential corporate data assets, intellectual property, or proprietary training weights via reverse-engineering or unmonitored model endpoints.
  • Potential Sabotage: The ultimate structural threat. The adversary successfully manipulates data pipelines, altering model layers and logic structures until the core predictive system is completely corrupted or operational workflows are entirely locked down.

The CISO’s Mandate: How to Use This Framework

As security professionals, our immediate assignment is simple: Do not try to boil the ocean. You don’t need to rebuild your security program from scratch to survive the AI era; you need to map your current tools and telemetry directly over this operational loop.

Take your existing Secure Email Gateways, your insider behavioral logging, your web content filters, and your SIEM rules, and overlay them onto these six phases. Look honestly for the blind spots. Where do you have great telemetry, and where are you completely blind to how data traverses your AI endpoints?

Once you document those structural gaps, you can build a realistic, risk-adjusted roadmap to defend the enterprise.

☕ Investor’s Corner: Capital, Churn, and the New Guard

As an advisor and CTO closely tracking technology deal flow, I am watching an aggressive reallocation of capital toward startups addressing structural gaps in the Unified AI Attack Lifecycle. Traditional endpoint and perimeter plays are heavily commoditized; the real valuation alpha right now is concentrated where machine learning pipelines meet autonomous execution.

If you are evaluating early-stage security bets or looking at infrastructure consolidation trends, here is what is happening across the market:

🚀 Early-Stage Startups to Watch (Seed / Series A)

We are tracking a wave of nimble, highly specialized entities built specifically to break the attacker’s progression along this modern lifecycle. A quick note before diving in: the following list isn’t an official endorsement, but rather a curated sampling of early-stage innovators that security leaders should actively monitor, evaluate, and engage with as they map out their defense roadmap.

  • The Vulnerability Test Layer (Phase 1/2): Companies like Armadin Security, XBOW, and Staris AI are capturing venture interest by shifting from manual testing to autonomous, AI-driven red-teaming capable of identifying deep logical flaws before offensive LLMs exploit them.
  • The Gateway & Proxy Layer (Phase 2/3): Startups including TrojAI, Prompt Security, and Lakera are establishing an early foothold as inline wrappers. They act as “firewalls for context strings,” sanitizing payloads to prevent indirect prompt injection.
  • The Non-Human Identity Layer (Phase 4/5): Solutions such as Onyx Security, Aembit, and Entro Security are solving the massive governance challenge of “Shadow Automation.” They manage privileges for automated worker agents, machine keys, and webhooks that outnumber human accounts in the enterprise.
  • The Autonomous SOC Layer (Phase 4/6): As telemetry volume explodes, Qevlar AI, 7AI, Crogl, and Dropzone AI are attracting late-Seed and Series A capital by engineering autonomous AI analysts capable of cross-correlating system alerts at machine speeds.

🎯 Key Market Drivers

  1. The Fallacy of the Legacy Tech Stack: Traditional Secure Email Gateways (SEGs) and standard SIEM rules are structurally blind to linguistic manipulation. Legacy platforms cannot identify semantic anomalies like indirect prompt injection or tensor dataset poisoning. This has created a massive greenfield replacement cycle for enterprise procurement.
  2. The “Agentic” Explosion: Organizations aren’t just using chat interfaces anymore; they are spinning up autonomous scripts and system integrations with live API read/write privileges. Securing non-human worker identities is the fastest-growing pain point for modern enterprise infrastructure.
  3. Training vs. Inference Infrastructure Costs: As market demand swings heavily toward inference (the actual operational queries hits on deployed models), security must move inline. Leaders are prioritizing high-throughput, low-latency security proxies that won’t choke data center capacities.

📈 What We Are Seeing in the Markets

We are seeing an intense amount of activity in the early rounds (Seed through Series A), driven by strategic venture arms (like CrowdStrike Falcon Fund and Okta Ventures) eager to co-invest alongside tier-1 institutional funds. Corporate buyers are hunting for immediate, plug-and-play architectural solutions.

The Takeaway for Private Capital: The standard cybersecurity playbook is fractured. The startups that can successfully integrate with existing data frameworks, prove they don’t break latency limits, and secure non-human automation parameters are commanding premium valuations and positioning themselves as prime consolidation targets over the next 18 to 24 months.

Let’s talk in the comments: How is your security organization adjusting to the risk of indirect prompt injection and shadow automation? Are you treating your AI agent identities with the same stringent perimeters as human accounts? What early-stage AI security vectors are currently sitting on your investment thesis for this year?

#CyberSecurity #CISO #AI #MachineLearning #InsiderRisk #TheSecurityCafe #ThreatModeling

Let’s Discuss

Is “Security by Design” still a pipe dream, or are we finally ready to architect with the assumption that the AI has already found the door?

Stay caffeinated, stay secure.

Please reach out to me or Boston Meridian Partners via our webpage and LinkedIn below.

www.bostonmeridian.com

Boston Meridian LinkedIn Page <- Follow this company!

About the Author:

I am Shawn Anderson, CTO and 2x former CISO, currently leading technical strategy at Boston Meridian. We are a boutique investment bank specializing in M&A and capital raises ($20m+) for the Cyber and Infrastructure sectors. Let’s connect on LinkedIn to discuss where the market is moving next.

RSAC 2026 Innovation Sandbox AI created Image.
You don't have to win to win big!

RSAC is here….The $32B Signal: What the Google-Wiz Deal and the RSAC Sandbox Tell Us About Cyber’s Next Chapter

March 18, 2026 / / 0 Comments

Last week the cybersecurity world shifted as Google’s $32 billion acquisition of Wiz officially closed. This marked the largest pure-play cyber deal in history. For those of us who have spent decades in the trenches, including my two tours as a CISO, this isn’t just a headline; it’s a validation of a massive structural shift in how we secure the modern enterprise.

Interestingly, Wiz was an RSAC Innovation Sandbox finalist in 2021. While they didn’t win the “Most Innovative” trophy that year, they won the market. As we look toward the 2026 RSAC Innovation Sandbox next week, we aren’t just looking for “cool tech.” We are looking for the architectural blueprints of the next multi-billion-dollar exits.

The C-Suite & Founder Brief: 3 Themes Driving Value

After reviewing the 2026 Sandbox finalists and the broader market, three clear mandates have emerged for C-level executives and founders building for an exit:

1. The Governance of “Agentic” Autonomy

We have moved past simple LLM integration. The new frontier is Agentic AI: autonomous entities with their own identities, permissions, and the ability to execute code. Finalists like Token Security and Geordie AI are tackling the “identity crisis” of 2026 by governing non-human agents that can think and act. For the C-suite, this is a critical risk management hurdle; for founders, it’s the most lucrative “gap-fill” in the current identity stack.

2. From Education to Active Intervention

Social engineering remains the primary breach vector, but the “quarterly training” model has failed. We are seeing a shift toward Human Threat Detection and Response (HTDR). Companies like Humanix and Charm Security are using conversational AI to intervene during an attack. This transforms the “human layer” from a liability into a defensible endpoint.

3. The Death of the “Noise Machine” (Platformization)

Legacy SAST and SCA tools are being disrupted by AI-native engines. ZeroPath and Clearly AI are moving toward deep code understanding that identifies business logic flaws rather than just syntax errors.

Founders who can prove they are “replacing” 3–4 legacy tools with one AI-native platform are commanding the highest premiums. I hear from colleagues all the time: “We have too many tools and not enough people to work them.” The market is finally listening.

Investor’s Corner: The PE and VC Outlook

At Boston Meridian, we’re seeing a “K-shaped” recovery in cyber investment. While mid-market volumes remain selective, the appetite for “category-defining” platforms is at an all-time high.

The Upward Arm (The “Elite” Performers)

  • AI-Native Platforms: Companies like Wiz or the Innovation Sandbox finalists (e.g., Token Security, and ZeroPath) that solve “new world” problems like Agentic AI and Cloud Governance.
  • The Premium: These companies are seeing record-breaking valuations and oversubscribed funding rounds.
  • The Drivers: Strategic buyers (Google, Microsoft, and Palo Alto Networks) are willing to pay a massive “scarcity premium” for technologies that define a new category.

The Downward Arm (The “Legacy” or “Feature” Gap)

  • Point Solutions: Startups that offer a “feature” rather than a “platform” (e.g., just another basic phishing simulator or a legacy SAST scanner).
  • The Struggle: These companies are facing valuation resets and difficult “down-rounds.”
  • The Drivers: CISOs are consolidating “vendor sprawl.” If a tool doesn’t provide massive ROI or integrate into a larger ecosystem, it’s being cut from the budget.

Strategic Outlook

  • VC Perspective: The “SAFE” notes being issued to this year’s Sandbox finalists signal a return to aggressive early-stage backing. The focus has shifted from “AI-enabled” features to “AI-first” architectures. We expect agentic security rounds to be significantly oversubscribed heading into Q3.
  • PE & Strategic M&A: The Wiz deal proves the “Big 3” cloud providers and late-stage PE firms will pay for multicloud ubiquity. Buyers want “anchor” technologies that secure AWS, Azure, and OCI simultaneously.
  • The Valuation Gap: There is a growing premium for companies solving Identity and Data Posture Management (IDPM). As AI agents become the primary users of data, any company providing a “unified brain” for governance, seeing inside the AI’s thoughts during inference (as Realm Labs does), is a prime M&A target.

Connect with Us at RSAC 2026

The Google-Wiz closing has set a new high-water mark for the industry. If you are a founder navigating a capital raise or a C-suite executive looking to optimize your security spend against these new threats, let’s talk.

The Boston Meridian team will be on the ground in San Francisco all week. We have scaled our presence to three dedicated suites to accommodate the surge in deal-flow discussions.

The 2026 “Emerging Stars” Lookbook: Beyond the finalists, we are taking meetings for a curated lookbook of high-potential companies we’ve been tracking, innovators in identity, DSPM, and AI governance that haven’t hit the headlines yet.

Please reach out to us via our webpage and LinkedIn below.

www.bostonmeridian.com

Boston Meridian LinkedIn Page <- Follow this company!

About the Author:

I am Shawn Anderson, CTO and 2x former CISO, currently leading technical strategy at Boston Meridian. We are a boutique investment bank specializing in M&A and capital raises ($20m+) for the Cyber and Infrastructure sectors. Let’s connect on LinkedIn to discuss where the market is moving next.

The “Claude Code” Correction: Why the SOC Isn’t Going Extinct

March 10, 2026 / / 0 Comments

In February 2026, the markets reacted to Anthropic’s Claude Code Security as if it were a “black swan” event for cybersecurity. Stocks for the “Big Three,” CrowdStrike, Palo Alto, and Zscaler, took a significant hit. But as a former CISO, I can tell you: code remediation is only half the battle.

The Practitioner’s View: Vulnerability vs. Velocity

The market panic ignored a fundamental technical truth: Claude Code is a “pre-commit” evolution. It helps developers find and fix bugs faster than ever, effectively commoditizing portions of the Application Security and OSS Risk categories we track at Boston Meridian. However, as Gartner recently noted, these tools do not replace the operational infrastructure required to protect a live enterprise.

A tool that patches code cannot:

  • Manage Identity (H + NH) or prevent a session hijack in real-time.
  • Oversee Network Security or enforce ZTNA across hybrid clouds.
  • Provide the Cyber Asset Intelligence needed to understand your true “blast radius” during a breach.

For those of us managing complex enterprise stacks, the panic was a classic market overreaction. As mentioned, Claude Code is a formidable pre-commit tool that excels at identifying vulnerabilities within a codebase and suggesting immediate patches. It is a massive win for developer velocity, but it is not a replacement for an enterprise security platform.

The gap lies in runtime and infrastructure. While AI can harden an application during development, it cannot:

  • Replace Endpoint Detection and Response (EDR) or manage active threats in a live environment.
  • Orchestrate Zero Trust Network Access (ZTNA) across a global, hybrid workforce.
  • Provide the comprehensive governance and compliance monitoring required by highly regulated industries.

As the Omdia 500 landscape illustrates, the ecosystem of partners—from global integrators like Deloitte and Accenture to infrastructure giants like IBM and NTT Data, exists because security is an operational discipline, not just a coding one.

(8) Post | LinkedIn

Where it Fits: The Boston Meridian Market Map

At Boston Meridian, we track the market across 9 critical domains. The “Claude” effect primarily touches Application Security. For CISOs and CIOs, the value here is in Security Enablement—using AI to reduce the “mean time to remediate.” But for the other 9 categories, from IoT/OT Security to Data Security, the need for robust, platform-centric defense has never been higher.

www.bostonmeridian.com – Mar 2026 – Market Map

Investor’s Corner: The PE & VC Outlook

  • The “Pure-Play” Squeeze: We are advising caution on standalone SAST/DAST vendors. As AI-native remediation becomes a feature of the IDE, these “point solutions” are prime targets for M&A or consolidation.
  • The Platform Resilience: The Omdia 500 confirms that the industry is built on service-heavy integrators and broad platforms. We see a massive opportunity for firms that can integrate AI-remediated telemetry into Managed Services (MSSP/MDR).
  • The Valuation Play: For startups looking to raise capital, we are looking for companies that don’t just “find” bugs but those that provide the Continuous Assurance and Evidence Automation that boards now demand.

Please reach out to us via our webpage and LinkedIn below.

www.bostonmeridian.com

Boston Meridian LinkedIn Page <- Follow this company!

About the Author:

I am Shawn Anderson, CTO and 2x former CISO, currently leading technical strategy at Boston Meridian. We are a boutique investment bank specializing in M&A and capital raises ($20m+) for the Cyber and Infrastructure sectors. Let’s connect on LinkedIn to discuss where the market is moving next.

AI is here to stay! One person’s perspective on attending Datatribe – Cyber Innovation Day 2025

November 14, 2025 / / 0 Comments

AI Security Takes Center Stage: Key Insights from DataTribe’s Cyber Innovation Day 2025 by Shawn Anderson, CTO and 2x CISO, Boston Meridian Partners

November 4th’s industry gathering revealed how artificial intelligence is fundamentally reshaping cybersecurity – from autonomous red teams to agentic AI governance

I was already a fan of DataTribe, but their daylong event at The Capital Turnaround—a historic Navy Yard car barn turned vibrant event venue—solidified my admiration. With engaging speakers, impressive startups, dynamic attendees, and great food, the event was a standout. Located in a revitalized area near the Washington Navy Yard, this venue is a must-see for your next event.

DataTribe’s Cyber Innovation Day 2025 brought together cybersecurity’s brightest minds to tackle the most pressing question facing our industry: How do we secure systems that are increasingly powered by artificial intelligence? From startup pitches to expert panels, the day revealed both unprecedented opportunities and sobering challenges ahead.

The AI Revolution in Security: Faster, Smarter, More Dangerous

The opening presentations from DataTribe’s portfolio finalists painted a picture of AI’s transformative impact. Anit Saeb, founder of Cytadel and former head of penetration testing at the Bank of England, demonstrated how AI-driven autonomous red teaming can achieve “full compromise in under 8 minutes—550x faster than ransomware groups.” According to Cytadel’s internal testing, his company’s AI agents have already bypassed the top three EDR vendors, proving that traditional defenses are struggling to keep pace.

Meanwhile, Tim Schultz from Starseer (formerly Verizon’s AI Red Team lead) highlighted a critical gap: “Current AI security tools only monitor user-LLM interactions, while agents act across databases and applications and communicate with other agents.” As organizations deploy AI agents that can independently access systems and make decisions, we’re entering uncharted territory for security governance.

The scale of this challenge became clear through Evercoast’s presentation on physical AI training. Their platform addresses a fundamental problem: “Physical AI has only thousands of hours of training data vs trillions for LLMs.” As AI systems move from chatbots to controlling physical infrastructure—from F-16 repairs to autonomous vehicles—the security implications multiply exponentially.

Industry Veterans Sound the Alarm

Jason Clinton, Deputy CISO at Anthropic, provided a sobering insider perspective on AI’s current trajectory. “AI compute [is] increasing 4x year-over-year since 1957,” he noted, with Anthropic now writing “~90% of code via Claude.” But this acceleration comes with risks: “Threat actor capability compression [is] occurring—Tier 1 and Tier 2 actors are converging as script kiddies can now ask models to write ransomware and C2 infrastructure.”

The shift in workflow is fundamental. As Clinton described it, we’re moving to “ask AI to do work, return to check results”—a complete reversal of traditional development processes. This creates new categories of vulnerabilities that traditional security tools weren’t designed to handle.

Dmitri Alperovitch, co-founder of CrowdStrike, brought historical perspective to these challenges. Reflecting on CrowdStrike’s founding after the 2010 Operation Aurora attacks, he emphasized that “if you can stop sophisticated actors, everything else becomes easy.” His advice for today’s founders was characteristically direct: “Don’t fear big company competition – fear unknown hungry startups.”

The Investment Landscape: Opportunity Amid Uncertainty

The investment panel featuring Rob Ackerman, Andrew McClure, and Phil Venables revealed a market in transition. “2025 cybersecurity financing: ~1,000 events, $15B volume with 50% being AI/AI-first companies,” they reported, but warned that “Series A to B graduation [is] declining (400 A rounds vs 40 B rounds = 10:1 ratio).”

The key insight? We’re moving from “orchestration” to what they termed “choreography” – AI agents organizing themselves in ways that traditional human-managed systems never could. This shift requires entirely new approaches to security architecture and governance.

Security Leaders Grapple with the “Lethal Trifecta”

Security practitioners Maurice Boissiere, Randy Sabett, and Pat Moynahan introduced a crucial framework for AI security risk assessment. They identified the “Lethal Trifecta for AI Agents: external data sources, external communications, and private data via unprompted input.” This framework provides a practical lens for evaluating AI deployments, though they admitted the overall assessment remains “chaotic due to AI adoption pressure vs security fundamentals.”

The panel emphasized that while “C-suite [is] now paying attention,” many organizations still lack basic incident response capabilities, with insufficient logging and “no forensic capabilities to determine breach scope.”

Media and Market Reality Check

Daniel Whitenack from the Practical AI Podcast provided valuable context on AI’s evolution, identifying three distinct phases: traditional ML (still widely used for specific tasks), foundation models (requiring technical expertise), and current generative AI that’s “squeezing out the middle” by enabling “business domain experts [to] bypass data scientists.”

Maria Varmazis from T-Minus Space Daily highlighted sector-specific vulnerabilities, noting that the “$614B global space industry” remains “10-15 years behind cybersecurity best practices.” Recent incidents include University of Maryland researchers using an “$800 antenna to intercept sensitive military/police communications” and “Russia’s 2022 ViaSat attack [that] disabled Eastern European satellite communications.”

Startup Innovation: Hardware Meets AI

Beyond software solutions, Tensor Machines demonstrated how AI security extends to physical systems. With “$2M NSF funding and 5 patents filed,” they’re addressing the “$5T+ autonomous systems market” through “physics-informed neural networks for real-time physical fingerprinting.” Their live demonstration showed automatic failover when camera spoofing was detected – exactly the kind of autonomous response needed as AI systems become more prevalent in critical infrastructure.

Lessons from the Trenches: Fundraising and Building

Throughout the day, practical wisdom emerged from battle-tested entrepreneurs. Alperovitch’s fundraising philosophy resonated: “Would you rather have 50% of a pea or 10% of a watermelon? No one ever went bankrupt because of dilution.” His emphasis on execution over technology trends – “customers buy effectiveness, not technology trends” – provided grounding amid AI hype.

The bourbon tasting session offered its own metaphor for startup persistence, featuring Charleston Red Corn Bourbon made from a “colonial-era variety that nearly died out” until a “Clemson professor found 2 cobs in seed vault [and] regenerated the line.” Sometimes the most valuable innovations come from reviving what others have given up on.

Take Action: Preparing for the AI Security Future

The insights from DataTribe’s Innovation Day point to several immediate actions every cybersecurity leader should take:

Assess your AI exposure now. Use the “Lethal Trifecta” framework to evaluate every AI deployment in your organization. Catalog which systems have external data access, communication capabilities, and access to private data without human oversight.

Invest in behavioral detection over signatures. Traditional signature-based security is already failing against AI-generated threats. Companies like Tensor Machines are pioneering behavioral fingerprinting approaches that can adapt to new attack patterns in real-time.

Prepare for agent governance. Whether you’re deploying AI agents or defending against them, establish clear policies for agent identity management, permission structures, and audit trails. The companies that solve this challenge early will have significant competitive advantages.

Bridge the talent gap strategically. With AI democratizing both offensive and defensive capabilities, focus on hiring people who can architect secure AI systems rather than just operate traditional security tools. The future belongs to organizations that can “choreograph” rather than just orchestrate their security operations.

Plan for autonomous security. As Jason Clinton noted, we’re approaching a world where “AI writes code → AI finds bugs → AI tests vulnerabilities → AI fixes issues.” Start experimenting with AI-powered security automation in low-risk environments to build competency for this inevitable future.

The cybersecurity industry stands at an inflection point. Organizations that act on these insights now—while their competitors are still debating whether AI is hype or reality—will be the ones defining security standards for the next decade. The question isn’t whether AI will transform cybersecurity, but whether you’ll be leading or following that transformation.

I attended DataTribe’s Cyber Innovation Day 2025 and compiled insights from presentations, panels, and networking sessions throughout the event.

Please reach out to us via our webpage and LinkedIn below.

www.bostonmeridian.com

Boston Meridian LinkedIn Page <- Follow this company!

About the author

Shawn Anderson has an extensive background in cybersecurity, beginning his career while serving in the US Marine Corps. He played a significant role as one of the original agents in the cybercrime unit of the Naval Criminal Investigative Service.

Throughout his career, Mr. Anderson has held various positions, including Security Analyst, Systems Engineer, Director of Security, Security Advisor, and twice as a Chief Information Security Officer (CISO). His CISO roles involved leading security initiatives for a large defense contractor’s intelligence business and an energy company specializing in transporting environmentally friendly materials.

Beyond his professional achievements, he is also recognized for his expertise in the field of cybersecurity. He is a sought-after speaker, writer, and industry expert, providing valuable insights to both C-Suite executives and boards of directors.

Currently, Mr. Anderson serves as the Chief Technology Officer (CTO) for Boston Meridian Partners. In this role, he evaluates emerging technologies, collaborates with major security providers to devise cybersecurity strategies, and delivers technological insights to the private equity and venture capital community.

Overall, Shawn Anderson’s career journey showcases a wealth of experience in cybersecurity and leadership roles, making him a respected and influential figure in the industry.

Observations so far in 2025 – Data, AI, and everything new under the sun.

October 8, 2025 / / 0 Comments

Every spring and late summer, the Boston Meridian Partners team attends two of the world’s largest cybersecurity conferences: RSA Conference in San Francisco and Blackhat in Las Vegas. These events are a whirlwind of activity—client receptions, dinners, and nearly 250 meetings with innovative tech companies and industry leaders. This year, I spent much of my time in Blackhat’s “Startup City,” a hub of emerging companies that’s far easier to navigate than the sprawling Moscone Center.

The Startup Scene: Shiny Pennies and Hidden Gems

Startups at these conferences are eager to showcase their innovations, often presenting themselves as the “next big thing.” However, many struggle to stand out in a crowded market. While their enthusiasm is infectious, differentiation is key—what I call the “shiny penny problem.” A penny, no matter how polished, is still a penny if it doesn’t offer unique value.

Meeting C-level executives at startup booths was a highlight, as this is rare for larger companies where leaders like George Kurtz or Satya Nadella are often mobbed by media. These interactions offered valuable insights into emerging technologies, particularly in artificial intelligence (AI). AI and Data: The Heart of Modern Security

AI dominated conversations this year, with startups focusing on data-driven security solutions. At Blackhat’s AI Summit, I heard repeated emphasis on the importance of data and identity in building secure environments. As I’ve said for decades, “It’s all about the data.” The rise of Large Language Models (LLMs) has amplified this, with data being consumed at unprecedented rates. However, the lack of controls—such as a Cloud Access Security Broker (CASB) for LLMs—raises concerns about rogue models masquerading as legitimate tools.

CISO Challenges: Balancing Priorities in a High-Pressure Role

Discussions with Chief Information Security Officers (CISOs) at Blackhat and RSA Conference revealed the immense pressure they face in balancing day-to-day operations with the need to adopt cutting-edge technologies. Many CISOs described their roles as a constant exercise in “blocking and tackling”—managing fundamental security tasks like patching vulnerabilities, responding to incidents, and ensuring compliance. These operational demands often leave little time to explore emerging technologies like AI-driven security tools or advanced identity management platforms.

One CISO from a manufacturing company shared a striking perspective: they prioritized keeping the production floor operational over implementing a robust data protection strategy. “If the factory stops, the business stops,” they explained, noting that downtime could cost millions. While understandable, this approach undervalues the long-term risks of data breaches, where sensitive intellectual property or customer data could be compromised. For example, a single unprotected dataset could be exfiltrated by attackers, leading to regulatory fines or reputational damage far exceeding the cost of a temporary production halt.

Identity management emerged as another significant challenge. Several CISOs reported using two to four different identity solutions, creating complexity and potential security gaps. One CISO from a financial services firm described their struggle with integrating legacy systems with modern cloud-based identity platforms, resulting in fragmented visibility into user access. They expressed frustration with “platform” solutions that promise seamlessness but often fall short, leading them to favor “best-of-breed” tools. However, this approach can increase costs and administrative overhead. A better strategy, as I’ve advocated previously, is adopting one or two well-integrated identity solutions that work seamlessly across on-premises and cloud environments, reducing complexity while maintaining robust security.

The growing prevalence of Internet of Things (IoT) and Operational Technology (OT) devices is also keeping CISOs up at night. With networks hosting tens of thousands of devices—ranging from smart sensors in offices to industrial control systems in factories—securing these endpoints is a daunting task. A CISO from a utility company highlighted the challenge of monitoring “dumb” devices with outdated firmware alongside “smart” IoT devices that are often poorly configured. They noted a recent incident where an unpatched IoT camera served as an entry point for a ransomware attack, underscoring the need for solutions that can monitor and secure both on-premises and cloud-connected devices.

Finally, many CISOs admitted to feeling overwhelmed by the rapid pace of technological change, particularly in AI. One CISO from a healthcare organization confessed they lacked the bandwidth to evaluate AI-driven security tools, relying instead on their team’s recommendations. This highlights a broader issue: CISOs are expected to be strategic visionaries while managing tactical firefights, often without sufficient resources or time to stay ahead of the curve.

Emerging Trends in Cybersecurity: Why Staying Current Matters

The cybersecurity landscape is evolving rapidly, driven by advancements in AI, the proliferation of connected devices, and increasingly sophisticated threats. Staying current with these trends is critical for CISOs and their teams to protect their organizations effectively. Falling behind can lead to blind spots, such as unaddressed vulnerabilities or missed opportunities to leverage new tools for efficiency and resilience. Based on my observations at Blackhat and RSA Conference, here are seven key technological trends shaping the industry, along with why staying informed is essential:

  1. AI Agent Governance: As organizations deploy AI agents for tasks like threat detection and customer support, the lack of oversight frameworks creates new risks. Rogue or misconfigured AI agents could expose sensitive data or disrupt operations. For example, a poorly governed AI chatbot might inadvertently leak proprietary information. CISOs must adopt “AI Agent Rewind” capabilities to audit and recover from misuse. Staying current ensures organizations implement governance early, avoiding costly mistakes as AI adoption scales.
  2. Detection-as-Code Revolution: Traditional manual security rule creation is giving way to AI-powered platforms that auto-generate detection rules from threat intelligence. Companies like SOC Prime now serve over 1 billion rules globally, enabling faster responses to emerging threats. CISOs who fail to adopt these tools risk falling behind adversaries who exploit automation. Keeping up with this trend allows organizations to scale their security operations efficiently, especially in resource-constrained environments.
  3. External Attack Surface Expansion: Threats increasingly bypass traditional perimeter defenses, requiring active validation of vulnerabilities “outside the firewall.” Tools that simulate real-world attacks are replacing passive scanning, providing more accurate risk assessments. For instance, a retailer recently discovered an exposed API through active testing, preventing a potential breach. Staying informed about this trend helps CISOs prioritize external risks, which are often overlooked in favor of internal network security.
  4. Behavioral Security Over Signatures: Signature-based detection is losing ground to behavioral fingerprinting and drift analysis, which establish custom baselines for each application to achieve near-zero false positives. A bank using behavioral security detected an insider threat by identifying unusual data access patterns, avoiding a significant breach. CISOs who embrace this trend can reduce alert fatigue and focus on real threats, but staying current is critical to selecting the right tools for their unique environments.
  5. LLM Firewall Emergence: As enterprises integrate Large Language Models (LLMs) into workflows, new tools are emerging to protect against prompt injection, data leakage, and model manipulation. For example, a healthcare provider recently faced a prompt injection attack that tricked an LLM into revealing patient data. LLM firewalls can mitigate these risks, but CISOs must stay educated on this nascent category to implement effective controls before widespread adoption.
  6. Browser-Based Threat Protection: Zero-day phishing attacks that bypass email security are a growing concern. Browser-based tools using computer vision and real-time analysis are protecting over 800,000 users by detecting malicious sites instantly. Staying current on this trend allows CISOs to bolster endpoint security, especially for remote workforces increasingly targeted by sophisticated phishing campaigns.
  7. Unified Security Platforms: Talent shortages and budget constraints are driving demand for platforms that consolidate IT, InfoSec, and cybersecurity functions. A unified platform enabled a mid-sized firm to reduce its security tools from 15 to 3, cutting costs and improving visibility. CISOs who stay informed about consolidation trends can streamline operations and address the “do more with less” mandate, but failing to keep up risks reliance on outdated, fragmented solutions.

Staying current with these trends is not just about adopting new tools but about understanding how they align with organizational priorities and constraints. For CISOs juggling operational demands, dedicating time to research, attending conferences, or collaborating with peers is essential to avoid being blindsided by new threats or missing opportunities to enhance security posture. Organizations that invest in continuous learning—through training, industry reports, or vendor partnerships—will be better equipped to navigate the complexities of modern cybersecurity.

Looking Ahead

As AI, data, and IoT/OT reshape the threat landscape, CISOs must balance innovation with foundational security practices. Staying ahead requires not only technical expertise but also strategic foresight to prioritize what matters most. I’d love to hear your thoughts—what trends are you seeing at conferences, and how are you keeping up? Share your insights below or connect with us at

www.bostonmeridian.com

Boston Meridian LinkedIn Page <- Follow this company!

About the author

Shawn Anderson has an extensive background in cybersecurity, beginning his career while serving in the US Marine Corps. He played a significant role as one of the original agents in the cybercrime unit of the Naval Criminal Investigative Service.

Throughout his career, Mr. Anderson has held various positions, including Security Analyst, Systems Engineer, Director of Security, Security Advisor, and twice as a Chief Information Security Officer (CISO). His CISO roles involved leading security initiatives for a large defense contractor’s intelligence business and an energy company specializing in transporting environmentally friendly materials.

Beyond his professional achievements, he is also recognized for his expertise in the field of cybersecurity. He is a sought-after speaker, writer, and industry expert, providing valuable insights to both C-Suite executives and boards of directors.

Currently, Mr. Anderson serves as the Chief Technology Officer (CTO) for Boston Meridian Partners. In this role, he evaluates emerging technologies, collaborates with major security providers to devise cybersecurity strategies, and delivers technological insights to the private equity and venture capital community.

Overall, Shawn Anderson’s career journey showcases a wealth of experience in cybersecurity and leadership roles, making him a respected and influential figure in the industry.

ZTA, Secure by Design, Platform, Best of Suite, what does all this mean???

November 22, 2024 / / 0 Comments

Boom… A little over a month ago, I published a blog around best of breed vs. best integrated vs. best of luck. Other related topics that CISOs, CTOs, and other C-Suite executives often discuss include Zero Trust Architecture (ZTA), Secure by Design, Best of Suite, and platform. Many CISOs and CIOs have strong opinions on these topics. Some feel ZTA is a bogus strategy and impossible to achieve, while others are committed to achieving it. Secure by Design is a dream many of us in the industry have had for decades. This blog will dive deeper into each of these topics, highlight companies in each area, and provide some talking points/benefits for each.

Defining Zero Trust Architecture (ZTA)

On the surface, Zero Trust Architecture is exactly what it sounds like: trust nothing without verification. This means verifying explicitly and using the principle of least privilege, where entities only have access when needed. Another key aspect is the “assume breach” mentality. While I understand the rationale, I prefer explicit verification over assuming a breach. For example, I know my house is secure because the doors are locked, and my dogs would alert me to any intruders. Similarly, a well-architected and monitored network should achieve the same level of security. Zero Trust is a continuous journey rather than a final destination.

Understanding Secure by Design

Secure by Design emphasizes integrating security into every layer of a system from the outset. As a CTO or CISO, fostering a culture of security by design is crucial. This approach includes principles like least privilege, assume breach, and defense in depth. Think of it like a car equipped with safety features such as airbags, seatbelts, and sensors. Similarly, your network should be designed with multiple layers of security. Achieving Secure by Design involves threat modeling, secure coding practices, and regular security training. Companies helping companies with this are Microsoft, Google, AWS, Cisco, IBM, Palo Alto Networks, and Crowdstrike. Crowdstrike has an interesting take on this as they push for “resilient by design” which I prefer as a practitioner. Security is always evolving and adversaries have even more resources to use against us. It’s critical to be resilient to achieve any level of success. Secure by Design is good as well so consider options of both when researching this for your own organizations

Best Integrated vs. Best of Platform

In a previous post, I discussed “best integrated,” which aligns with the concept of “best of platform.” This approach involves selecting a broad set of tools within an extensible framework that supports your goals and security needs. Always choose tools with built-in integration capabilities to ensure seamless operation. Some of the same companies as above are considered highly focused on on “best integrated” and walk the line into platform if customers wish to do so. Technology companies that focus on “platform” are Trend Micro, Qualys, Zscaler, Lacework, and Tenable. Thes companies focus on cloud-native solutions, compliance, advanced threat protection, insurance, and management solutions which all taken together help customers build a “best platform”.

Best of Suite

The best of suite approach involves selecting a comprehensive suite of security tools from a single vendor. Having worked at an investment bank for the past three years, I’ve seen a trend towards security consolidation. The managed services space is also growing as more companies outsource their security needs. While the initial cost can be higher, this approach requires careful planning and architecture. It is important to understand there are small differences in each of these. While Microsoft is on many of these lists it is due to the fact you can choose some or all of their capabilities. Google is very similar where you can look at Gartner, 451, or Forrester1 and they will have both companies highly rated. This is important for “Best of Suite”. Other companies to consider would be Salesforce, Oracle, SAP, Adobe, Workday, and ServiceNow. They have “platforms” around Enterprise resource planning, customer relationship management, IT Service Management, and Operations Management. They can integrate tools across marketing, sales, service, and commerce.

Conclusion

Over the past two blogs, we’ve explored best of breed, best integrated, best of suite, platform, and Secure by Design. Each approach has its complexities, costs, and challenges. It’s essential to consider the data and remember that “culture eats strategy” every day of the week. As a new CIO, CTO, or CISO, gaining buy-in from key stakeholders is crucial. My recommendation is to choose a framework, build your architecture based on existing capabilities, and develop a roadmap for gradual improvement. Change requires time and endurance, but with a strategic approach, you can shift the culture one tool at a time.

In conclusion, take a strategic approach rather than a tactical one to avoid constantly playing “whack-a-mole.” A well-developed architecture will align the C-Suite and help you create a robust security plan. Avoid making decisions based on personal preferences alone, and focus on building a cohesive and secure environment.

If I missed speaking with you at Blackhat, I along with the team at Boston Meridian Partners would be happy to jump on a call to chat about the state of the markets or help you navigate the M&A process. Please reach out to us via our webpage and LinkedIn below.

www.bostonmeridian.com

Boston Meridian LinkedIn Page <- Follow this company!

About the author

Shawn Anderson2 has an extensive background in cybersecurity, beginning his career while serving in the US Marine Corps. He played a significant role as one of the original agents in the cybercrime unit of the Naval Criminal Investigative Service.

Throughout his career, Mr. Anderson has held various positions, including Security Analyst, Systems Engineer, Director of Security, Security Advisor, and twice as a Chief Information Security Officer (CISO). His CISO roles involved leading security initiatives for a large defense contractor’s intelligence business and an energy company specializing in transporting environmentally friendly materials.

Beyond his professional achievements, he is also recognized for his expertise in the field of cybersecurity. He is a sought-after speaker, writer, and industry expert, providing valuable insights to both C-Suite executives and boards of directors.

Currently, Mr. Anderson serves as the Chief Technology Officer (CTO) for Boston Meridian Partners. In this role, he evaluates emerging technologies, collaborates with major security providers to devise cybersecurity strategies, and delivers technology insights to the private equity and venture capital community.

Overall, Shawn Anderson’s career journey showcases a wealth of experience in cybersecurity and leadership roles, making him a respected and influential figure in the industry.

  1. Gartner, 451 Research, Forrester ↩︎
  2. http://www.linkedin.com/in/shawnanderson ↩︎

Best of Breed, Best integrated, or Best of Luck?

October 9, 2024 / / 0 Comments

When it comes to implementing technology solutions, C-level executives often face a critical decision: should they opt for a Best of Breed or a Best Integrated Solution? As top decision-makers, their focus is on keeping the company running smoothly, growing the business, and ensuring customer satisfaction. However, they often rely on technical experts to guide them in choosing the right technology, as they don’t always have the time to dive deep into the details.

Why Executives Prefer Strategic Decisions Over Tactical Ones

Executives are naturally risk-averse and prefer to make informed, data-driven decisions quickly. Their time is limited, and they need to keep their focus on high-level strategies. It’s imperative that leadership remains focused on the company’s broader goals, rather than getting bogged down in the minutiae of tactical decisions. As a result, many executives turn to third-party analysis from companies like Gartner, Forrester, or 451 Research to guide their choices. These firms offer insights that can help companies decide whether to go with a Best of Breed approach or a Best Integrated Solution.1

What Is the “Best of Breed” Approach?

The Best of Breed approach involves selecting the best individual technology or software for each function, regardless of the vendor. The idea is to optimize performance in each specific area by using specialized tools.

Advantages of Best of Breed:

  • Specialized Functionality: Each solution is tailored to the unique needs of a specific business function, providing superior performance in that area.
  • Flexibility and Customization: Since each solution is chosen for its particular functionality, businesses have the flexibility to tailor and customize tools to their exact requirements.
  • Innovation and Agility: Specialized vendors tend to focus on innovation in their niche, which means businesses often benefit from faster adoption of cutting-edge features.

Disadvantages of Best of Breed:

  • Integration Complexity: Integrating multiple systems from different vendors can be complex, time-consuming, and expensive. It often requires expertise to ensure seamless data flow between systems.
  • Vendor Management: Dealing with multiple vendors increases complexity in terms of licensing, support, and maintenance.
  • Higher Total Cost: While the upfront costs may be attractive, managing multiple solutions can increase the total cost of ownership over time due to maintenance and integration efforts.

What Is the “Best Integrated Solution” Approach?

A Best Integrated Solution involves choosing a single platform or suite of applications from one vendor that covers a wide range of business functions. This approach simplifies the IT environment by minimizing the need for integration between different tools.

Advantages of Best Integrated Solution:

  • Seamless Integration: Since all components are designed to work together, there are fewer compatibility issues, making it easier to manage and implement across the organization.
  • Simplified Vendor Management: With just one vendor, managing licensing, support, and maintenance becomes simpler and more streamlined.
  • Lower Risk of Implementation Failures: With pre-tested compatibility, the risk of technical failures during implementation is reduced.
  • Unified Data Flow: A single platform allows data to flow seamlessly across different business functions, improving data accuracy and reducing silos.

Disadvantages of Best Integrated Solution:

  • Limited Flexibility: While the system may work well overall, it might not be the best fit for every individual business function, leading to compromises in some areas.
  • Vendor Lock-in: Relying on one vendor can lead to dependency, making future changes more difficult and potentially costly.
  • Slower Innovation: Large, integrated systems may evolve more slowly compared to specialized vendors, meaning businesses might miss out on cutting-edge features.
  • High Upfront Costs: The initial investment in an enterprise-wide system can be substantial, both in terms of licensing and the resources needed for implementation.

Which Approach Is Right for Your Business?

Both approaches have clear advantages and disadvantages, and the right choice depends on your organization’s specific needs, resources, and long-term goals. The Best of Breed approach offers flexibility, innovation, and specialized functionality but requires more effort to integrate and manage. On the other hand, a Best Integrated Solution offers simplicity, streamlined processes, and a unified data flow but may sacrifice some level of customization and agility.

Regardless of the path you choose, success lies in careful planning, budgeting, and architectural design. A “spray and pray” approach—where you simply hope things work out without a solid strategy—will almost certainly fail. If you’re unsure about which direction to take, consulting with a systems integrator can help you navigate the complexities and make the best choice for your organization.

In the end, whether you choose Best of Breed or Best Integrated Solution, the key is to align your technology choices with your broader business strategy. After all, the goal is to keep growing the business and keeping customers happy.

If I missed speaking with you at Blackhat, I along with the team at Boston Meridian Partners would be happy to jump on a call to chat about the state of the markets or help you navigate the M&A process. Please reach out to us via our webpage and LinkedIn below.

www.bostonmeridian.com

Boston Meridian LinkedIn Page <- Follow this company!

About the author

Shawn Anderson2 has an extensive background in cybersecurity, beginning his career while serving in the US Marine Corps. He played a significant role as one of the original agents in the cybercrime unit of the Naval Criminal Investigative Service.

Throughout his career, Mr. Anderson has held various positions, including Security Analyst, Systems Engineer, Director of Security, Security Advisor, and twice as a Chief Information Security Officer (CISO). His CISO roles involved leading security initiatives for a large defense contractor’s intelligence business and an energy company specializing in transporting environmentally friendly materials.

Beyond his professional achievements, he is also recognized for his expertise in the field of cybersecurity. He is a sought-after speaker, writer, and industry expert, providing valuable insights to both C-Suite executives and boards of directors.

Currently, Mr. Anderson serves as the Chief Technology Officer (CTO) for Boston Meridian Partners. In this role, he evaluates emerging technologies, collaborates with major security providers to devise cybersecurity strategies, and delivers technology insights to the private equity and venture capital community.

Overall, Shawn Anderson’s career journey showcases a wealth of experience in cybersecurity and leadership roles, making him a respected and influential figure in the industry.

  1. www.gartner.com, www.forrester.com, www.451research.com ↩︎
  2. www.linkedin.com/in/shawnanderson
    ↩︎

Boston Meridian Fireside chat at RSA Conference Reception 2024.
It's all about the data!

Observations from RSAC2024 – A Security Roadmap for AI

June 10, 2024 / / 0 Comments

Most of us have fully recovered from our very busy week at this year’s RSA Conference. The massive cyber security event which takes place in San Francisco with over 60k of my closest cybersecurity friends. As most of us already figured would be the topic de jour, there were very few if any in attendance, who were not talking about GenAI. Specifically, the impacts it is and will have on our industry and the rest of the world as we know it.

I have written about Artificial Intelligence (AI) in the past and how it’s going to be the integration of GenAi and different other solutions which will truly cause significant disruption. GenAI and the combination of other technologies such as robotics, medical, oil and gas exploration, retail delivery, fast food experience, and even tier 1 and 2 security operations center functions. This all sounds really cool and fascinates me with the massive potential GenAI has to impact the world.

Boston Meridian Partners, the company I work at, hosts a reception on Sunday evening each year prior to the conference. We host this meeting for numerous startups and friends from the private equity and venture capital world as well as many C suite executives with interest in cyber security. Our goal the past few years has been to get some top-notch speakers to share their wisdom with the crowd and this year’s speakers did not disappoint.

We had Chris Krebs from SentinelOne, Brian Finch from Pillsbury Winthrop Shaw Pittman LLP, and Kate Kuehn from WTI who shared key points on regulatory issues (Note: Thankfully we have the EU who have established many key requirements for the world to follow as our own US government has been slow to pass any legislation with real teeth). They also spent time talking about risk and the importance of collaboration and coordination. While we discussed many key investor topics around GenAI it couldn’t have been a better way to set the stage for the RSA Conference and our very full week of over 150 meetings from across the community. 1

I took away quite a few pointers as I met with startups, CEOs, speakers at numerous events, and in general discussion around a good craft beer or cocktail in the evenings. Here are some take aways from and things to ponder as we push GenAI initiatives in our companies and industries we support.

  1. As mentioned above, collaboration and coordination are key to success. It might seem like a no brainer but many of us are hardheaded and like to “go it alone” which can be a big mistake. It’s imperative we work closely with industry partners, government agencies, and relevant councils to manage AI-related risks and incidents. Fostering this collaboration will enhance GenAI security across the collective.
  2. Risk – I have spoken on this, written about it, and will shout it from the highest mountain as long as I have air in my lungs; “It’s about the data”. It’s super critical to conduct thorough risk assessments specific to GenAI deployments and focus on the data risk. It’s being sucked like a vacuum into these Large Language Models (LLMs) with little to no understanding where the data is going or how it is being used. It is critical for CIO’s and CISO’s to identify potential vulnerabilities, threats, and attack vectors related to AI technologies.
  3. Zero Trust and/or Secure by Design – We use the term “it’s easier to bake it in than spread it on like peanut butter” but often we find companies doing this very thing. Prioritize security from the outset. Ensure those GenAI systems are designed with zero trust (we trust nothing and no one without verification) and with security in mind, incorporating Multi-Factor Authentication, encryption, and access controls.
  4. Supply Chain and 3rd party security – Extending security considerations throughout the entire GenAI supply chain is now a must do these days. One cannot assume the suppliers are doing the right thing or have you in their best interest. They should, but it’s up to you to verify and set up the appropriate controls and service level agreements. This goes back to the “collaborate” discussion above and ensuring safe and responsible use of GenAI.
  5. Finally, we have the geek moment and have to allow technology and or the “hunters” to red team. This should be performed regularly as GenAI exercises and tabletops with the executive team’s involvement. By simulating attacks organizations can identify weaknesses and improve defenses. Since it’s often illegal to go on the offensive against adversaries we must have strong defenses in place.

Overall, it was another amazing week in San Francisco, and I enjoyed meeting so many innovative companies on the show floor. While GenAI is still in its infancy it has quickly become a show of force from all thing’s cybersecurity. GenAI will speed up our ability to do our jobs (but also the adversaries) but we have to be strategic and work faster through the traditional “blocking and tackling” abyss we so often fall into. Teamwork makes the dreamwork!

If you missed us at RSA, I along with the team at Boston Meridian Partners will be at Blackhat, Las Vegas this coming August so please reach out to us via our webpage and LinkedIn below.

www.bostonmeridian.com

Boston Meridan LinkedIn Page <- Follow this company!

Learn More: CISA Roadmap FAQs, CISA AI Roadmap, Cam Sivesind article on “cisa-roadmap-for-ai”, Grayson Milbourne – Forbes Article on “Small Business Roadmap for AI”

About the author

Shawn Anderson2 has an extensive background in cybersecurity, beginning his career while serving in the US Marine Corps. He played a significant role as one of the original agents in the cybercrime unit of the Naval Criminal Investigative Service.

Throughout his career, Anderson has held various positions, including Security Analyst, Systems Engineer, Director of Security, Security Advisor, and twice as a Chief Information Security Officer (CISO). His CISO roles involved leading security initiatives for a large defense contractor’s intelligence business and an energy company specializing in transporting environmentally friendly materials.

Beyond his professional achievements, Anderson is recognized for his expertise in the field of cybersecurity. He is a sought-after speaker, writer, and industry expert, providing valuable insights to both C-Suite executives and boards of directors.

Currently, Anderson serves as the Chief Technology Officer (CTO) for Boston Meridian Partners. In this role, he evaluates emerging technologies, collaborates with major security providers to devise cybersecurity strategies, and delivers technology insights to the private equity and venture capital community.

Overall, Shawn Anderson’s career journey showcases a wealth of experience in cybersecurity and leadership roles, making him a respected and influential figure in the industry.

  1. https://www.linkedin.com/in/christopherckrebs/
    https://www.linkedin.com/in/brianfinch-cybersecurity/
    https://www.linkedin.com/in/katekuehn/
    ↩︎
  2. www.linkedin.com/in/shawnanderson/ ↩︎
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